Nodal Exchange achieves record performance in power and environmental futures in the first half of 2023
Nodal Exchange today announced strong performance in both power and environmental futures as of the end of June 2023. Nodal achieved its best half year power volume for the first half of 2023 with 1.54 billion MWh traded, up 3.5% from first half 2022 which was the previous record. The majority of U.S. power futures open interest is on Nodal Exchange with 1.275 billion MWh representing $112 billion of notional value based on both sides as of the end of June 2023. U.S. power futures open interest on Nodal Exchange grew 7.8% year over year as of the end of June.
Nodal also posted strong growth in volumes and open interest in the environmental market suite in the first half of 2023. Total volume for Nodal environmental products in the first half of 2023 was 164,638 lots, up 20.7% from 136,435 lots a year earlier. Total open interest in Nodal environmental products hit a new record of 274,766 during May and ended June 2023 with 271,457 lots, up 33.3% from a year earlier and setting a new record for month end open interest. The Renewable Energy Certificates (RECs) product group also hit an open interest record of 241,451 lots in the first half 2023 and ended June at 233,567 lots, up 37.3% from a year earlier. The open interest of RECs on Nodal at the end of June 2023 represents 66.8 million MWh of clean energy, which is 62.5% share of the total U.S. RECs market. The renewable generation of electricity it represents can power over 6.3 million U.S. homes for a year.
Some key environmental sectors showed notable open interest gains, including:
- PJM-based REC contracts ended first half 2023 at 142,374 lots of open interest, up 24.0% from 114,784 lots a year earlier
- Texas CRS contracts ended first half 2023 at 49,861 lots, up 43.6% from 34,724 a year earlier
- NEPOOL related contracts ended first half 2023 at 37,327 lots, up 102.3% from 18,450 a year earlier
"Nodal Exchange is proud to serve these markets, and we are very pleased to see them continue to grow," said Paul Cusenza, Chairman and CEO of Nodal Exchange and Nodal Clear. "As the year progresses, we look forward to continuing to develop and offer innovative products that meet the evolving needs of our markets."
ABOUT NODAL
Nodal Exchange is a derivatives exchange providing price, credit and liquidity risk management solutions to participants in the North American commodities markets. Nodal Exchange is a leader in innovation, having introduced the world's largest set of electric power locational (nodal) futures contracts and the world's largest set of environmental contracts. As part of EEX Group, a group of companies serving international commodity markets, Nodal Exchange currently offers over 1,000 contracts on hundreds of unique locations, providing the most effective basis risk management available to market participants. In addition, Nodal Exchange offers natural gas contracts. All Nodal Exchange contracts are cleared by Nodal Clear which is a CFTC registered derivatives clearing organization. Nodal Exchange is a designated contract market regulated by the CFTC.
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